Kale Company owned an automobile acquired on January 1,1996 , at a cash cost of \(\$ 35,100\); at that time, the automobile was estimated to have a useful life of four years and a \(\$ 2,700\) salvage value. Depreciation has been recorded through December 31, 1998, on a straight-line basis. On January 1, 1999, the automobile was traded for a new automobile. The old automobile had a fair market value (trade-in allowance) of \(\$ 6,750\). Cash of \(\$ 31,050\) was paid.

Prepare the journal entry to record the trade-in under generally accepted accounting principles.